Growth investors were presented with a golden opportunity to buy-low on top quality equities in late 2018. Volatility has reared its head in May as anxiety has built over the U.S.-China trade war and slowing global growth.
Still, the current environment looks good for the two equities we will cover today. Both are pricey after a hot star to 2019, but a summer pullback offers a solid opportunity to scoop both up.
VISA (NYSE:V) is the largest payment processor in the world. Credit card companies have seen profits balloon on the back of high consumer debt and increased rates over the past several years. This makes for a precarious situation for consumers, one which central banks are working hard to balance.
In the second quarter of 2019 VISA reported net income of $3 billion or $1.31 per share which was up 14% and 17%, respectively, from the prior year. Revenues climbed 8% to $5.5 billion. VISA stock has increased 23.3% in 2019 as of close on May 30. The stock is up over 200% over the past five years.
Mastercard (NYSE:MA) is the second-largest payment processor in the world. Shares have climbed 34.7% in 2019 so far. The stock has increased over 230% over the last five years.
In the first quarter of 2019 Mastercard reported net income of $1.9 billion or $1.80 per share compared to $1.5 billion or $1.41 per share in Q1 2018. Revenue beat analyst forecasts and came in at $3.89 billion.
Both stocks are pricey today but should be monitored as we move into the summer.
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